Cybersecurity is one of the largest threats to privacy and integrity of company information in the modern era. In 2013, Cisco forecasted that “smart” devices would grow to 50 billion by 2020, and with cybercrime damages estimated to cost the world $6 trillion annually by 2021, cyber safety will compound its relevance to personal and enterprise data. The Big Data and business analytics market is already predicted to grow to $203 billion by 2020, with the cybersecurity market estimated to grow to $202 billion by 2021. In short, the cybersecurity market is a large market in desperate need of disruption.
One potential solution we find to be extremely compelling for the business to business cybersecurity market is Indoor Positioning Analytics (IPA). While IPA has a number of potential applications beyond cybersecurity, this technology seems like it could become the gold standard for protecting sensitive information in a business or government workplace. That’s one of the reasons we’ve been following Inpixon (INPX). The company is a market leader in the IPA space and cybersecurity is one of the fastest growing segments of their IPA business.
Generally speaking, IPA works by identifying smart devices within a given geographic location (like an office or a mall) and then using artificial intelligence and machine learning to accumulate data and uncover patterns and trends. If necessary, an IPA system can take some kind of action, like sending a mall customer a targeted advertisement, or deploying protective cybersecurity measures like disabling all video and audio recording functions on a mobile device.
Inpixon’s IPA cybersecurity product is called Security Dome, and it appears to be one of the best solutions on the market. Security Dome works through a series of sensors that are installed in a specific area. These sensors detect mobile and IoT devices inside of a designated zone or room, and enforce security policies of the zone by sending alerts to proper authorities or disabling the device’s audio recording and video/camera functions. Disabling a mobile device is done through a mobile device management (MDM) system, that needs to be pre-installed on the target device. Typically, MDM systems are standard issue when companies or government agencies supply their employees with mobile devices. In the event a device enters a secure zone but does not have an MDM system, then Security Dome will flag the unlisted device on a comprehensive user interface with the office layout providing real-time location and and send out an alert to the security team.
In addition, Security Dome also listens for RF frequencies intended to intercept confidential transmissions. If an unauthorized frequency is detected, Security Dome will send an alert to the designated security team, with the location and type of the foreign device.
It would seem as if nearly every organization concerned with protecting sensitive information could become a Security Dome customer, which is one of the reasons we believe Inpixon could grow very quickly. This is particularly the case because the company is deploying a unique sales strategy that is already gaining tremendous traction.
The challenge with selling a product like Security Dome, is that its capabilities are both IT and security focused. In large organizations, these departments are typically separated making it difficult to find just the right person (or people) to approach with a sales pitch. Inpixon has found an ingenious way to sidestep this issue altogether by working directly with existing security providers like Honeywell, Sengex, and Phirelight. Since these security companies are already established vendors for a large number of businesses and government organizations, they can go directly to the appropriate contact within each company or branch of government.
This allows Inpixon to leverage each channel partner’s sales force in an extremely effective way. In essence, Inpixon is scaling its business very quickly and without hiring a massive sales team all over the world. This approach also cuts the sales lead time significantly, because each channel partner can go directly to the appropriate representative at the client-company.
Inpixon’s innovative Security Dome technology in conjunction with its unique channel partner sales strategy are two good reasons to believe the company could lead the way in disrupting the business to business cybersecurity industry.
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